13 December 2007

All licence holders

Dear colleagues

REVISED ENVIRONMENTAL POLICY GUIDANCE

1. On 19 July 2007¹ we consulted all licence holders on our proposals to update our 1996 environmental guidance document.² This review implemented one of the key policy objectives of our April 2007 sustainable development conclusions document³ which set out our intention to deliver our statutory sustainable development and environmental duties in a more proactive way.

2. We received seven responses to our consultation, all of which were broadly supportive of our proposals. A summary of these responses, and our views on the comments made, is attached to this letter. Copies of the responses and the attached summary can be found on our website at http://www.rail-reg.gov.uk/server/show/ConWebDoc.6939.

3. I am now writing to inform you that our revised environmental guidance, which is attached to this letter, becomes effective from today. Accordingly, all new environmental policies produced in accordance with a licence holder's environmental licence condition must take due account of this guidance.

4. Annex A of the revised guidance identifies the Key Performance Indicators that the industry, through its Sustainable Development Steering Group (SDSG), has agreed that we should publish in order to measure and monitor rail's environmental performance. We

¹ Revised environmental policy guidance – a consultation, ORR, 19 July 2007 (available at http://www.rail-reg.gov.uk/upload/pdf/333-envguid.pdf). ² Railways operations and the environment: environmental guidance, ORR, March 1996 (available at http://www.rail-reg.gov.uk/upload/pdf/29-environment96.pdf). ³ ORR's sustainable development & environmental duties: conclusions, April 2007 (available at http://www.rail-reg.gov.uk/upload/pdf/324.pdf). will aim to publish the first two indicators where industry data is available in the 2007-08 National Rail Trends Yearbook. We will work with the industry to develop and produce the remaining indicators with a view to publishing all of these before the end of March 2010. We will consult you further on any proposed changes to Annex A that result from this further work.

5. As stated in our July consultation letter, we now plan to review all existing licence holder policies over the coming months, and will offer advice where we consider that changes may be helpful in order to bring policies more into line with the new guidance.

6. This letter and the revised Guidance is being published on our website today.

Yours faithfully

Sarah Straight